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Scale Validation

Journal of Family and Economic Issues

As an extension of our prior Scale Validation work, the NEFE research team, along with our subject-matter expert panel, collaborated on a special issue of the Journal of Family and Economic Issues (JFEI) on measurement quality. This important collaboration advances the empirical evidence base on measurement, but also furthers crucial conversations needed in the field, while highlighting a commitment to increasing support for measurement efforts in family finance. As Warmath, Le-Baron Black & Wilmarth (2026) explain, “Despite the fundamental importance of measurement, it receives relatively little attention in the field of family finance” (para. 1). NEFE contends that this phenomenon extends to the entire Personal Finance Ecosystem’s research base and is one of the main reasons we’re dedicating our resources to make this a strategic imperative.

Out of the 10 articles included in this special issue, four were directly related to the Scale Validation work and its associated dataset collected to address validation efforts for marginalized populations not typically included in these efforts. To supplement these four empirical articles, the “Introduction to the Special Issue on Measurement” (Warmath, et al., 2026) is a starting place for readers to orient to the contents of this special issue from a high-level perspective. Additionally, “Adding Equity Considerations to Construct, Scale, and Model Development in the Field of Financial Education” (Caraballo, 2026) offers an important framework for integrating culturally responsive, relevant and equitable measurement practices.

We invite you to peruse the open-access articles provided here and to also visit the Journal’s website for more information and additional articles. 

Introduction to the Special Issue on Measurement

Dee Warmath, Ashley B. LeBaron-Black & Melissa Wilmarth

Quality measurement is a requirement for good science and an important consideration in whether the science should be relied on for policy, program development, innovation, and future research. Despite the fundamental importance of measurement, it receives relatively little attention in the field of family finance. This special issue seeks to stimulate conversation on the subject and communicate JFEI’s commitment to supporting measurement efforts.

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Improving Measurement in the Study of Consumer Finance: Consensus from the NEFE Scale Validation Project

Dee Warmath, Katrina Borowiec, Ashley B. LeBaron-Black, Gary Mottola, Miranda Reiter, Kurt Schindler & Joshua Caraballo

Research conducted in the areas of consumer/household finance and financial education is intended to inform policy, programs, and practices that encourage more positive financial decisions and outcomes. The way in which that research is conducted matters. The development, selection, and use of measures is a core element of our research; however, little attention is paid to the topic. The objective of the consensus process reported in this paper was to identify impactful and feasible recommendations for the improvement of measure-related decisions in this field.

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The Concept of Money Management Across Poverty Levels

Dee Warmath, Ashley B. LeBaron-Black, Gary Mottola & Kurt Schindler

In our field, there are few opportunities to examine (and demonstrate) the properties of existing measures. A recent survey of 993 US adults conducted by the National Endowment for Financial Education (NEFE) provides such an opportunity. In this study, we examine the factorial validity, reliability, and measurement invariance of the Brief Money Management Scale.

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Adding Equity Considerations to Construct, Scale, and Model Development in the Field of Financial Education

Joshua Caraballo

Measurement, as a broad umbrella term, is often treated as a methodological detail, but in reality, it is a matter of accuracy, precision, and the epistemological outcomes that address equity and justice through the associated models intended to improve peoples’ lives. The instruments we use to capture constructs such as financial capability, financial well-being, and financial behaviors influence the conclu­sions we draw, the interventions we design, and the policies for which we advocate.

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An Overlooked Population: Why Linguistic Background Matters in Personal Finance Survey Design

Katrina Borowiec, Miranda Reiter, Ashley B. LeBaron-Black & Kurt A. Schindler

Linguistic diversity in the United States is growing. While language is often a focal area of consideration when designing and validating international surveys, the diversity of language within one individual country may be overlooked. Indeed, despite the diversity of languages used in the United States, most surveys are still administered in English. Depending on English language proficiency, question reading levels and question complexity may impact the responses provided.

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Cultural Sensitivity Project

Project Synopsis

For the past two years, NEFE has led a collaboration on a scale validation project with the intent of addressing a major gap in the literature: the lack of rigorous testing and validation of the most utilized survey assessments in the financial services industry. It is important to understand which scales work best and for whom, especially when survey results are used to make decisions about individuals and communities. Some studies in personal finance use confirmatory factor analysis to assess the measure fit of scales, but little work has been done to assess measure invariance, meaning there are little to no differences in interpretation across sub-groups. This makes it difficult to interpret study findings or to discern what a study is contributing to the body of knowledge. Invariance testing is crucial to studying how different scales apply across demographics and other consumer subsets. Researchers have faced barriers in making this happen due to lack of training, funding or other reasons. This motivated NEFE to explore solutions that will circumvent this obstacle and help move the field forward.

The two-year collaborative research project with Mission Measurement started with approximately 90 scales, filtered by the following criteria:

  • Created using samples of adults aged 18 years and older.
  • Produced after the year 2000.
  • Has at least two measurable items within the scale.

NEFE, with assistance from a panel of seven financial literacy experts, narrowed down the 90 scales to 11 final scales, based on the presence of some validity testing, rigorous development, or those that are pervasive and commonly used. The project’s data originated from the 11 chosen scales and demographic questions, with the sample attempting to capture the diversity of the U.S. adult population to ensure sufficient counts of 12 demographic sub-groups to support the planned analyses.

Two methods were used in the assessment of these existing scales. Confirmatory factor analysis examined how well the hypothesized factor structure (i.e. the set of items for each scale or subscale and the factor loadings for each item) fits the new data collected. Scale reliability (assessed using Cronbach’s Alpha) was utilized to measure whether the scale could be expected to provide consistent measures over time. The results showed that, of the 11 scales, five exceeded all fit statistics and were labeled “favorable”; three were labeled “reasonable” because they exceeded most fit statistics; and three were labeled “problematic” because they failed to exceed the thresholds for several fit statistics.

Following those assessments, invariance was calculated through multigroup confirmatory factor analysis, which helped indicate whether the questions are interpreted similarly by sub-groups of the sample. Scales that perform well in the confirmatory factor analysis and reliability analyses may not provide valid and reliable measures of the construct for all demographic subgroups, especially those traditionally marginalized. Invariance testing helps us understand if a given measure is being interpreted in the same way across different cultural backgrounds and other types of demographics, which allows researchers to make more accurate comparisons across groups.

Researchers have a responsibility to ensure reliability with the construct being tested to study the populations and sub-groups in their study, and it is especially important when investigating traditionally marginalized groups who were not likely to have been represented in the original scale development process. This study is a great step for assessment of existing scales, but it does require additional research so that more groups can be included to support scale development and selection. The next steps could include further demographic characteristics for these scales and an evaluation of further scales not included in the study with confirmatory factor analysis and measurement invariance to specify their issues and identify solutions. Additionally, NEFE is in the process of collaborating with the panel to produce a consensus paper sharing recommendations emerging from this project and a set of methodological studies to address specific topics raised during the project.

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